Risk Analysis Of Centralized Purchasing For Real Estate Enterprises

EG Real Estate Group was established in Guangzhou in 1996,which present rapid development in the real estate sector recent years.In 2016,EG Real Estate Group became the largest real estate enterprise for its sales value in China,which is 373.4 billion yuan.According to the annual reports of EG Real Estate Group,its operating income rose from 57.23 billion yuan in 2009 to 211.44 billion yuan in 2016,with an average annual increase of 67.47%.Meanwhile,the gross profit rose from 1.95 billion yuan to 59.42 billion yuan with an average annual increase of 62.92% during the same period.The speed of the hypernormal and leap-type development of EG Real Estate Group has attracted a huge attention from the whole property industry.EG Real Estate Group has fully achieved the goal of cost control,quality improvement,nationwide popularization,and rapid turnover,by the methods of centralized management of materials and equipment used in construction,decoration and park construction.The centralized management includes centralized determination of product models,centralized procurement,centralized acceptance check,centralized supplement.This is a very centralized procurement mode that has helped EG Real Estate Group succeeded in high turnover operations,fast development,and nationwide popularization.The centralized procurement mode was invented by EG Real Estate Group and is significantly different from the other models used in the property industry.By establishing of a special sales company,EG Real Estate Real Estate unified national materials procurement bidding,distribution,so result in a great control of the company's costs,improvement of the utilization of materials,and then control the quality of the project.However,to our best knowledge,there is no completed and comprehensive study on this important cost control mode in EG Real Estate.This thesis will use the case study method to select EG Real Estate Group's centralized purchasing management as the research object from the purchasing manager's point of view.Through the risk analysis,the concentrated purchasing process of EG Real Estate Group is dismantled into five key processes,namely,tendering organization stage,contract signing stage,supply acceptance stage,settlement stage and supplier maintenance stage,and the five key processes are analyzed separately.Then make the corresponding questionnaire,using expert investigation method to fully solicit the opinions of 37 employees,sorted out the existence of the 64 risk items in EG Real Estate Group centralized purchasing process.Then organized experts evaluate the probability and effect of the concentration purchasing risk in EG Real Estate Group.Then,the risk value of each risk item is calculated by statistical analysis method,which is used to assess the importance of risk item.And finally,24 risk prevention suggestions are put forward to prevent the risk before the centralized purchasing of EG Real Estate group,which can provide recommendations and solutions for conscious risk prevention and risk-taking in the execution of the purchase.In the new era,the industry of real estate is full of both challenges and opportunities,and a thoroughly industry reshuffle is around the corner.The development and reform of the industry put forward higher requirements on the management level of enterprises.The real estate companies are trying their best to survive by improving management,while more and more creative management modes are continuously emerging.As an industry leader,the experiences and lessons of EG Real Estate Group have strong reference and research value.Based on the case studies,this thesis provides guides for more enterprises to strengthen cost management,innovation management and improving management level.